S. Korea aiming for top ten trading rank this year: gov't

SEOUL, April 16 (Yonhap) -- South Korea is seeking to become one of the top 10
trading nations in the world this year by expanding the global market share of
its products, the government said Thursday.
The Ministry of Knowledge Economy said in a report made at the trade investment
promotion meeting chaired by President Lee Myung-bak, that the country could
raise its global trade ranking -- which has stood relatively unchanged at 11-13th
place in the last 21 years -- in 2009.
It also said by taking advantage of the expected contraction in global trade
volume, the country may be able to increase its worldwide market share to over 3
percent for the first time.
The country, after coming in at 30th place in 1973, ranked as the 11th largest
trading nation in 1988 with global market share reaching 2.3 percent. Its
standing slid one notch to 12th place last year with global market share hitting
2.6 percent.
If the country's market share ranking goes up as forecast, it may surpass
countries like Russia, Britain and Canada.
"The overall contraction in trade can be used to allow South Korean-made goods to
make further inroads in overseas markets," said Vice Minister Kim Young-hak. He
said that if local companies actively seek greater market share this year, this
may lead to a surge in exports once the global economy makes a comeback.
Locally made ships, semiconductors, displays and information technology (IT)
products have made steady gains to wrestle markets from rivals in recent months,
despite an overall decline in demand.
The senior official, however, said that a sharp decline in overseas demand will
make it impossible for the country to meet its export target of US$426.7 billion
this year.
"The government expects exports to fall 13 percent on-year to 365.0 billion from
422.0 billion reached last year, with imports plunging by around 20 percent to
$347.5 billion for a surplus of $15-20 billion," he said.
The negative growth in exports will be the first for the country in eight years.
Kim, in addition, said that for this year Seoul aims to export its first nuclear
reactor to Turkey or Jordan with the government designating resuable energy
technology, light emitting diodes, e-government and information technology
service systems as new growth engines.
The ministry, meanwhile, said at the gathering at the Korea International
Exhibition Center west of Seoul, that it will permit the 3 trillion won (US$2.3
billion) payment guarantee fund operated by Korea Export Insurance Corp. to be
used to help liquidity flow for small- and medium- sized enterprises (SMEs) in
shipbuilding, autos and electronics sectors.
Over 10,000 SMEs may benefit from the funds that will allow companies to
immediately convert payment drafts received from large companies into cash.
Payment drafts require the recipient company to wait before payment is made that
can cause complications for cash-strapped businesses.
Other measures to help companies call for greater export insurance coverage, and
waivers on 370 billion won worth of repayments for foreign exchange risk
insurance that come due this year.
yonngong@yna.co.kr
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